Developing a Subscription Box Model

Subscription boxes have become very popular and the model is being used for everything from beauty products to food. Developing a subscription box model for your food items isn’t always an easy task. However, it does provide a huge benefit to both the consumer and the company providing the box.

With a subscription box model, you don’t have to get into retail locations and you can run everything from a simple website online. This e-commerce model works very well for frozen foods when it’s implemented properly. Here are a few tips to help with the developing of a subscription box model for your frozen foods company.

Create a Great Box Idea

You probably don’t want to just make the subscription box about one food product. It’s best to create a meal kit or some other type of inclusive box giving the customer more value for their money. Look at your target market and decide what makes the most sense.

It can also be helpful to look at your competition and see what they are doing. With the growth of the subscription box economy, it’s not difficult to find ideas from your competitors. Many will have subscription boxes already and you can see what they are offering.

Choose a Price

Once you have a box in mind for the subscription, you’ll want to choose your price. It’s best to leave at least a 40% profit margin or you may not be able to sustain the model. If you price too low, it can be difficult to make any money from this model, but if it’s too high, you may struggle to acquire customers.

When choosing your price, you should also consider a model that allows for month-to-month payment, three-month payments, six-month payments, and 12-month payments. You can even offer a discount for paying an entire year or even a half year upfront.

Create a Prototype Box

A prototype box gives you the opportunity to see the box before you send it to your customers. You can even use a prelaunch with a few customers to ensure they are happy with what you’re providing. A prelaunch and prototype box also allows you to get the feedback you need to make adjustments before doing a full launch of your subscription box.

Make Sure You’re Ready to Ship

Shipping may be the hardest thing for frozen food companies to figure out when creating a subscription box. You need to make sure you’re ready for this element of the model as delivering the box to your customer the same way it left the warehouse and having it arrive on schedule is crucial for your success. The last thing you want is a box of your food delivered late and spoiled because you didn’t have it properly packed or shipped correctly.

If you plan to use an insulated box liner or any other type of insulated shipping container, make sure you factor this into the overall cost and price of the box. Even with insulated box liners, you want to make sure you give the customer and the company delivering your subscription boxes very specific instructions for delivery.

Adjust As You Grow

With a subscription box model, you can adjust your box and the way you run this business as you grow. Growth is good, but you need to scale your business in a way you can handle and make adjustments as you see fit. Maybe you introduce new boxes along the way or you end up growing into a larger fulfillment facility.

If you plan to implement a subscription box model for your frozen foods company, having an expert in logistics is always a good idea. Partnering with the right company specializing in frozen foods will ensure you can develop and launch your subscription box model without any issues. Choose someone with experience in both frozen foods and the subscription box model to help you.

Frozen-Foods

By | 2018-12-06T14:17:45+00:00 December 3rd, 2018|eCommerce, Frozen Logistics|0 Comments
Does Your Product Have What It Takes To Succeed in the Food Business? Get a FREE Production and Marketing Analysis      Jumpstart your success! Call (212) 247-1800 today!   

Enter Your Name and Email

Click the Button Below for Instant Download